SBI FD

Can you tell me in detail about the Fixed Deposits schemes offered by SBI (State Bank of India) for its customers in India?

Fixed deposits are offered both by banks and companies or corporate, also called as NBFCs (Non-Banking Finance Companies) in India. Corporate fixed deposit schemes offer higher rates of interest compared to bank deposits. Companies offer fixed deposits at attractive interest rates to raise capital.

Since SBI (State Bank of India) offers such a wide variety of fixed deposit schemes to pick from, the features are also varied. The features may expect to see associated with SBI fixed deposits may be:

• Tax benefits under section 80C

• Extra interest of 0.25% payable to senior citizens

• Loan and overdraft facilities of up to 90% of the deposited amount

• Auto-renewal facility when a maturity period has not been defined

• Linking of TDRs to saving / current account to allow periodic withdrawal of interest earned

• Nomination facilities

• Interest rates will remain the same as they were at the time of opening the FD regardless of changes made to the scheme after the FD was opened. New interest rates will be applicable only on renewal of the deposit.

• No limits on the amount that can be invested.


The minimum and maximum periods for funds to be held with SBI vary with the scheme that one chooses.

As such the minimum period is 7 days and the maximum period is 10 years. The minimum and maximum periods for each of their schemes are:

• SBI Tax Savings Scheme, 2006: 5 - 10 years
• Reinvestment Scheme: 6 - 10 years
• SBI MODS: 1 - 5 years
• Recurring Deposits: 1 - 10 years
• Annuity Deposit Scheme: 3 - 10 Years
• SBI Flexi Deposit Scheme: 5 - 7 years

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Answered By StudyChaCha Member